RELIANCE INDUSTRIES
LIMITED
QUARTERLY RESULTSQ2 FY 13 (POST.1)
RELIANCE
INDUSTRIES LIMITED has declared improved Results for the second Quarter ending
Sep,2013. Ril has so many ventures under its Umbrella that it is difficult to
review all of them individually in one post here. The high lights of the Q2
results as well as first Half year results are as below. Individual divisional
performances will be reviewed separately.
1H
FY 13 PERFORMANCE HIGH LIGHTS
§ Strength in global
refining continues – with 2Q FY13 GRM of $ 9.1/bbl, Singapore complex margins
at their 5-year high
§ RIL delivers strong
refining performance; crude-throughput of 34.8 MMT (operating rate 112%)
§ GRM of $ 8.5/bbl for
1H FY13 and $ 9.5/bbl for 2Q FY13
§ Robust demand for
petrochemicals in 1H FY13 - polymers demand up 17% and polyester demand up 9%
§ On a Q-o-Q basis,
net profits are up 20.2% at Rs.5,376 crore ($ 1.0 billion)
§ Near 3 fold growth
in US shale production during 1H FY13 vs 1H FY12 - production volume at 50.1
BCFe for the first half
§ Meaningful progress
in new projects – technology tie-ups signed for off-gas cracker and coke
gasification with Technip and Phillips 66 respectively
§ RIL and PDVSA
signed a 15 year heavy crude oil supply contract and a MOU to further
development of Venezuelan heavy oil fields
§ RIL completed share
buy-back of over 39 million shares with an aggregate amount of ` 2,796 crore
Q2 FY 13 FINANCIAL PERFORMANCE
§ Significant improvement in GRM on a trailing quarter
basis providing the positive impact on PBDIT (GRM of $ 9.5/bbl vs $ 7.6/bbl)
§ Weaker margins in petrochemicals and refining and lower
oil & gas production resulting in decline in profits on Y-o-Y basis
In Crs
|
2Q FY 13
|
1Q FY13
|
2QFY12
|
%CHNG
|
%CHNG
|
2Qvs1Q
|
2Qvs 2Q
|
||||
Turnover
|
93,265
|
94,926
|
80,790
|
-2%
|
15%
|
PBDIT
|
9,817
|
8,651
|
10,946
|
13%
|
-10%
|
PBDIT Mrgn
|
10.50%
|
9.10%
|
13.50%
|
||
Net Profit
|
5,376
|
4,473
|
5,703
|
20%
|
-6%
|
EPS(Rs)
|
16.6
|
13.7
|
17
|
§ Widening
product cracks and tight supplies boosting GRM on Q-o-Q basis ($ 9.5/bbl vs $
7.6/bbl) positively impacting refining EBIT
§ Petrochemicals
EBIT remained stable as increase in volumes offset decline in prices
§ Lower
production in oil & gas resulted in decline in EBIT
FINANCIAL RESULTS 1 H FY 13
In Crs.Rs.
|
1HFY13
|
1HFY12
|
%CHNG
|
Turnover
|
188,191
|
164,479
|
14%
|
PBDIT
|
18,468
|
21,950
|
-16%
|
PBDITmrgn
|
9.80%
|
13%
|
|
NetProfit
|
9,849
|
11,364
|
-13%
|
EPS.Rs.
|
30.3
|
34.7
|
§ Net profit for 1H FY13 declined due to lower GRM of $ 8.5/bbl
(vs $ 10.2/bbl), lower oil & gas production and margin pressure in
petrochemicals
§ Lower GRM ($ 8.5/bbl vs $ 10.2/bbl) partly offset by higher
volumes impacting refining EBIT – EBIT margin further impacted due to base
effect
§ Petrochemicals EBIT margin impacted by sharp decline in
polyester chain deltas and weaker PP delta
§
Production
decline resulting in lower EBIT for the upstream business
§ Strong
recovery in refining margins leading higher EBIT on a sequential quarter basis
§ 1H
FY13 EBIT declined on account of lower contribution from all businesses
NET PROFIT BRIDGE
§ Significant improvement in operating performance led by
refining business resulting in higher net profit on Q-o-Q basis
§ 1H FY13 decline in net profit was due to lower operating
income. This was partly offset by higher other income and lower depreciation
and tax charges
Fin.Ratios
|
Sep-12
|
ft
11-12
|
|
Cash
Balance (Rs.Cr)
|
79,159
|
70,252
|
|
Net
Debt :Equity
|
Debt
Free
|
Debt
Free
|
|
NetGearing
|
DebtFree
|
Debt
Free
|
|
Gross
Intt Cover
|
11.4
|
12.9
|
|
ROCE%
|
11.90%
|
11.40%
|
|
ROE%Adjsuted
|
11.40%
|
13.30%
|
|
§ Cash balance increased despite dividend payout, share
buy-back and capital expenditure
§ Investment grade rating retained: BBB positive outlook by
S&P; Baa2 positive outlook by Moody’s (both ratings are 1 notch above
India’s sovereign rating) - domestic debt rated AAA by CRISIL and FITCH
§ Weaker margin environment and higher other income impact ROE
§ Lower cash profit impacting gross interest cover
OIL & GAS EXPLORATION & PRODUCTION
Business Environment
§ Improving
visibility for E&P business in India but implementation remains a concern
§ Rangarajan
Committee appointed by the Government of India to:
·
Study and recommend on key PSC-related
issues
·
Streamlining the administration of PSC
·
Resolving long pending domestic gas pricing
principles/issues
§ Exploration
in mining lease area also being considered
§ However,
no significant improvement in ground-level decision making
§ LNG
prices remain at $10-11/MMBTU with market expected to remain tight
§ Higher
resource price environment resulting in shortage in the rig and services market
DOMESTIC E&P PRODUCTION UPDATE
§ KG-D6 averaged at 30 MMSCMD of gas and 10,680 BOPD of
oil/condensate
§ Average crude oil price realization for the 1H FY13 was $
103/bbl for KG-D6 and $ 111/ bbl for PMT
§ Gas price realization remained at $ 5.73/MMBTU from
Panna-Mukta, $ 5.57/MMBTU from Tapti and $ 4.20/MMBTU from KG-D6
Panna-Mukta & Tapti Update
Ongoing projects to
augment production :
§ Mid Tapti - 3 additional ERD wells has commenced. Due to
batch drilling, first gas expected in 3Q FY13
§ South Tapti - 3 infill wells to be taken up subsequent
to completion of Mid-Tapti ERD wells
§ Panna Mukta – PL wells to be drilled next year. Drilling
rig contracted
Following projects
under way :
§ Concept studies underway for the water injection project
§ Mukta – B development - FEED in progress
KG-D6 – Update
§ D1-D3
o Revised FDP submitted in Aug 2012
o Approval of critical work program suggested in FDP and
budget to address decline in reservoir pressure and enhance recovery
§ D26 (MA)
o Revised FDP agreed by MC in Aug 2012. Formal sign-off
awaited
o Additional gas well and conversion of oil wells in gas
to accelerate production of reservoir gas cap
§ R Series / Satellites
o Geo-technical survey completed
o Geophysical survey work awarded
o FEED contract awarded
o Development plan(s) submission based on integrated
concept targeted for 2H FY13
§ Drilling exploratory well (MJ1)
o Proposal for drilling MJ1 submitted - well will target
deeper sediments in the existing D1-D3 ML area, similar to the MA oil and gas
field
NOTE : Other details about individual divisions / areas
will be reviewed separately. Overall, there is improvement in the performance
of RIL.
* *
* E N
D * * *
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